Lifted chiefly by its ProFlowers.com floral business, Provide Commerce Inc. reported that net sales rose 44% from a year ago to $23.3 million for its second fiscal year quarter which ended Dec 31. Net income for the quarter was $984,000. Net income includes an income tax expense of $891,000 plus $752,000 in stock-based compensation. Without the stock-based compensation effect and related tax effect, earnings for the quarter would be $1.5 million, compared to $436,000 for similarly-adjusted earnings in the second quarter a year earlier.
“As evidenced by the continued growth in our second fiscal quarter, we believe that the potential of ProFlowers alone can be a $500 million business for Provide Commerce,” says Bill Strauss, CEO. Provide Commerce also operates two additional web sites under its gourmet foods business units, UptownPrime.com and .CherryMoonFarms.com.
While Provide Commerce didn’t break out results for those units, Strauss says, “While this business is still in its early stages, we believe that our results imply that we are successfully leveraging the direct business model, technology platform and operational processes that helped to create millions of repeat orders in the floral category.”
For the quarter, the company added 202,000 customers, a 25% increase over Q2 2004, bringing the total customer database to 3.4 million, a 42% increase over the previous year’s Q2. Returning customers generated 64.8% of net sales, up from 58.5% in the same period a year ago. Average order value rose to $45.33 in the second quarter from $44.79 a year ago.
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